Last week’s review of the macro market indicators suggested, heading into the end of February saw the Equity markets as strong moving out of consolidation higher. Elsewhere looked for Gold to continue lower in the short term while Crude Oil continued to consolidate after its bounce. The US Dollar Index also looked to continue to consolidate sideways while US Treasuries were biased lower. The Shanghai Composite and Emerging Markets were both consolidating with a bias to break that to the upside. Volatility looked to remain subdued keeping the bias higher for the equity index ETF’s SPDR S&P 500 (ARCA:SPY), iShares Russell 2000 Index (ARCA:IWM) and PowerShares QQQ (NASDAQ:QQQ), despite the moves higher the past week. Their charts also suggested more upward price action on both the daily and weekly view. This was the first week in a while that all 3 Index ETF’s looked strong.
The week played out with Gold probing lower before finding support at 1200 again while Crude Oil drifted lower in its consolidation. The US dollar moved moved sideways but to the top of the range by the end of the week while Treasuries had a small bounce before pulling back. The Shanghai Composite came out of the holidays to the upside while Emerging Markets tried to move higher but stalled. Volatility drifted to a new low for 2015. The Equity Index ETF’s rose on this combination but gave back most or all of the gain by Friday. All were in a tight range all week. What does this mean for the coming week? Lets look at some charts.
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